PUNJAB NATIONAL BANK vs M/S DIGITAL DENTAL X- RAYS on 27 October 2026

: - FINAL ORDER- :

1. This Original Application is filed on 20.09.2019 by the applicant bank under Section 19(1) of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the Defendants 1 and 2, for recovery of a total sum of Rs.31,11,889.37p (Rupees Thirty One Lakhs Eleven Thousand Eight Hundred and Eighty Nine and thirty Seven Paise only) due in respect of Working Capital Term Loan (A/c No.644700IB00000042) and PNBGCC scheme facilities (A/c No.6447KU00001608) repayable together with further interest @13.10% p.a. and 9.70% p.a. respectively with monthly rests along with penal interest @2% (simple) from the date of Application till the date of realization in full, for sale of hypothecated assets morefully detailed in schedule to the OA and for costs of this OA.

2. Originally, this Application was filed before DRT-II, Chennai, assigned OA No.852 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.852 of 2019 stood transferred to this Tribunal and renumbered as TA No.1179 of 2023. Brief Facts of the case:

3. The Applicant submits that the application is filed within the period of limitation as prescribed under Section 24 of the Recovery of Debts and Bankruptcy Act, 1993, and the subject recovery claim falls within the jurisdiction of this Tribunal.

4. It is the case of the applicant bank that the 2nd defendant is the Sole Proprietor of the concern M/s Digital dental X-Rays, 1st defendant while one Working Capital Term Loan of Rs.30 lakhs was availed by the 2nd defendant, as Sole Proprietor of the concern M/s Digital Dental X-rays another loan of Rs.9.75 lakhs under PNB General Credit Card Scheme was availed by 2nd defendant in the personal individual capacity. Hence the 2nd defendant is jointly and severally liable for repayment of both the loans one as a sole proprietor and another as an individual.

5. It is the further case of the applicant bank that the 2nd defendant approached the applicant bank on 27.10.2013 with a request dated 27.10.2013 for sanction of the Working Capital Term Loan of Rs.30 lakhs for starting of her practise in dentist/orthodontics as Sole Proprietor of her Proprietorship concern M/s Digital Dental X-Rays, Chennai.

6. The 2nd defendant also submitted her clinic registration certificate dated 08.11.2013 with Department of Industries and commerce, Govt of Tamilnadu, Chennai as Small service enterprises no.2013/33/002/ 42623/SDSC.

7. The applicant bank considered the request dated 27.10.2013 and sanctioned Working Capital Term Loan for Rs.30 lakhs on 29.10.2013. The defendants executed Agreement of Hypothecation of Assets to secure Term Loan on 29.10.2013.

8. The applicant bank submits that one of the terms and conditions of loan was that the loan was repayable in 84 Equated Monthly Instalments (EMI) of Rs.65,332/- commencing from the next month of disbursement. After the disbursement of the Term Loan of Rs.30 lakhs, the same was utilised by the defendants for her clinic/business and thus they are liable to pay the same together with interest, penal interest, costs and expenses etc.

9. To avail the said credit facility of Term Loan, the 2nd defendant for self and for and on behalf of her sole-proprietor concern M/s Digital Dental X-rays had executed the following loaning and other documents in favour of applicant bank:

a) Acceptance of terms and conditions of sanction dated 29.10.2013 in respect to term loan for Rs.30 lakhs as intimated to the defendant on 29.10.2013. It was by way acknowledgement by the defendant by accepting the terms and conditions of sanction by writing accepted under her signatures of her concern on sanction letter as acknowledgement.

b) Execution of Agreement hypothecation of assets to secure Term Loan dated 29.10.2013 for Rs.30 lakhs with interest rate @14.75% p.a. with monthly rests and penal interest @2% (simple)

c) CGTMSE coverage application dated 28.12.2013.

d) Execution of balance and security confirmation letter on 09.06.2016 and on 07.07.2018 extending the limitation till 07.07.2021

10. It is the further case of the applicant bank that the 2nd defendant Mrs. Sinimol John approached the applicant bank on 26.10.2016 with request dated 25.10.2016 for sanction of loan of Rs.9.75 lakhs under PNB General Credit Card Scheme (PNBGCC) to meet out the expenses including the expenses of the clinic/profession and some of the personal other expenses and the day to day expenses.

11. To avail the above said facility of loan under PNBGCC scheme the 2nd defendant had executed the following loaning and other documents in favour of the applicant bank:

a) Acceptance of terms and conditions of sanction as per letter of acceptance dated 26.10.2016 in respect to loan for Rs.9.75 lakhs as intimated to the defendant on 26.10.2016. It was acknowledged by the defendant by accepting the terms and conditions of sanction by writing accepted under her signature on sanction letter as acknowledgement.

b) Execution of agreement for loan/cash credit/overdraft dated 26.10.2016 for Rs.9.75 lakhs with interest rate @10.69% p.a. with monthly rests and penal interest @2% (simple)

c) CGTMSE Coverage application dated 30.03.2017.

12. The applicant bank submits that subsequent to availing of loan, the regular repayment was not forth coming despite the regular meetings and requests by the bank officials to the borrowers could not bring any result and all the heed made went to the deaf ears, the bank was then constrained not to permit any such facility further to the defendant and thus finally classified the account of working capital term loan as Non Performing Asset (NPA) on 11.07.2018 with the balance outstanding of Rs.16,14,566/- and that of PNB General Credit Card scheme on 12.10.2018 with balance outstanding of Rs.10,46,891.50p

13. The applicant bank has to recover a sum of Rs.3,86,784.85/- as accrued interest and Rs.63,647.02p as of penal interest. Ever since from the date of availing of credit facility barring few initial repayments, the defendants remained irregular in repayment and did not pay the monthly instalments as per agreed terms and conditions of EMI. The applicant bank had taken up the matter with the defendant several times to comply with the terms and conditions of the sanction letter and loan, security & other documents forth with but failed to adhere to the same for the reasons best known to them. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

14. After the filing of the OA, summons were sent to the Defendants 1 and 2 through Registered Post with Acknowledgment Due, which was returned with postal endorsement as ‘left’ in respect of D-1 and D-2. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 19.07.2021 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 placed ex-parte on 19.07.2021. Heard the submissions of Applicant Bank and perused the records.

15. To prove the case of the Applicant Bank, Mr. M. Velayuthm, Chief Manager of the Applicant Bank, filed Affidavit by way of evidence and same was considered as evidence of AW-1 and list of documents came to be marked as Ex A-1 to A-15.

16. A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-15 evidence that the borrowal of credit facilities and execution of loan and security documents are true, in terms of averments made in Original Application as well as Proof Affidavit filed by applicant bank establishing its claim. Applicant bank filed Statement of Accounts duly certified under Bankers’ Book Evidence Act, evidencing the amount claimed against defendants.

17. The defendants were set ex-parte on 19.07.2021, but till this day they did not take any action to set aside the ex-parte order and did not choose to contest the claim. Further, a careful scrutiny of records makes it clear that present application is filed well within limitation and this Tribunal possesses necessary and proper jurisdiction to entertain and adjudicate the claim. No oral or documentary evidence on the side of defendants are produced or filed to dispute the claim of applicant bank. Hence, it can be concluded that applicant bank has proved its claim against defendants.

18. With regard to the amount advanced, the interest applied, the conduct and operations in the account and the default committed, this Tribunal comes to the conclusion that the applicant bank is entitled for a final order on the following terms:

: O R D E R :

19. The OA is allowed with costs,

(a) The applicant bank is allowed to recover from the Defendants 1 and 2, a sum of Rs.31,11,889.37p (Rupees Thirty One Lakhs Eleven Thousand Eight Hundred and Eighty Nine and thirty Seven Paise only) due in respect of Working Capital Term Loan (A/c No.644700IB00000042) and PNBGCC scheme facilities (A/c No.6447KU00001608) repayable together with further interest @13.10% p.a. and 9.70% p.a. respectively with monthly rests along with penal interest @2% (simple) from the date of Application till the date of realization in full along with for costs of this application.

(b) In the event of failure of the Defendants to pay the aforesaid amount, the bank is at liberty to recover the amount by sale of the schedule mentioned hypothecated properties morefully detailed in the OA schedule.

(c) Schedule mentioned hypothecated properties shall be appended to this final order.

(d) If the sale proceeds of the hypothecated assets are not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the Defendants (both movable and immovable) to recover the balance dues as required under law for which the Defendants to disclose to the Tribunal particulars of other properties or assets owned by the Defendants;

(e) The applicant bank shall file the latest memo of calculation of OA amount together with interest, costs etc., to be paid by the Defendants duly considering the amounts, if any, paid by the Defendant and/or amount realized by sale of assets etc., during the intervening period after the filing of the OA, enabling the Registry to prepare Recovery Certificate for the amount to be paid by Defendants to the applicant bank.

(f) The applicant bank shall file memo of costs within ten days from the date of this final order.

(g) Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.

20. A copy of this order be communicated to the parties concerned.

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI

(Dictated to Roshnee, transcribed by her, corrected, signed and pronounced by me on this the 27th day of October, 2026) ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Mr. M. Velayuthm, Chief Manager of the Applicant Bank Exhibits on the part of the Applicant:

Sl. No. Date Description of Documents Exhibit No.

1. 27.10.2013 Request application of defendant for term A-1

loan of Rs.30 lakhs

2. 08.11.2013 Certificate of registration of Dept of Industries and Commerce, Govt of Tamilnadu permitting the defendants as Small Servicing Enterprises A-2

3. 29.10.2013 Letter intimating the sanction of term loan of Rs.30 lakhs with terms and conditions A-3

4. 29.10.2013 Agreement of hypothecation of assets to secure term loan for Rs.30 lakhs by defendants A-4

5. 28.12.2013 Defendant request for CGTMSE coverage for WCTL facility A-5

6. 25.10.2016 Request application dated 25.10.2016 for loan/cash credit/overdraft for Rs.9.75 lakhs by defendant for PNB general credit card scheme A-6

7. 26.10.2016 Letter of undertaking for availing credit limit under PNB General credit card scheme for Rs.9,75,000/- by defendant A-7

8. 26.10.2016 Agreement of loan/cash credit/overdraft for Rs.9.75 lakhs by defendant for PNB General credit card scheme A-8

9. 30.03.2017 Defendant request for CGTMSE Coverage for PNBGCC limit A-9

10. 09.06.2016 Balance & security confirmation letter signed by defendants A-10

11. 07.07.2018 Balance & security confirmation letter signed by defendants A-11

12. 06.07.2018 Letter for not crediting the amount and not operating the general credit card account properly A-12

13. 06.08.2018 Legal notice for payment of due amount of Rs.9,97,288/- as on 30.05.2018 in General credit card loan account A-13

14. 07.01.2019 Applicant bank demand notice for payment of recoverable amount in both the loan accounts A-14

15. 20.09.2019 Statement of accounts for term loan and general credit card scheme total recoverable dues of Rs.31,11,889.37/- as on 20.09.2019 with further applicable interest, penal interest w.e.f. 21.09.2019. A-15

Witness Examined for the Defendants: -Nil- List of Documents Exhibited for the Defendants: -Nil –

:-SCHEDULE OF HYPOTHECATED PROPERTY-: All medical equipments and machines, spares, tools and other consumables such as X-Ray machine, computer, air conditioners, all furniture and fixtures and all accessories used in the profession of dentistry/orthodontics and all that goods bought from bank finance etc lying at Sri Durga Towers, No.112, 70 feet road, Jawaharlal Nehru Nagar, Perambur, Chennai- 600 082.

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI